This post focuses on the measurements that can be used to determine the performance of the engineering department, especially of its new-product design function. There are no financial measurements listed here at all. Instead, the formulas cover such operational issues as bill of material accuracy, reuse of parts in new product designs, and ability to reach target costs.

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The measurements discussed in this post include:

Bill of Material Accuracy
Labor Routing Accuracy
Percentage of New Products Introduced
Percentage of Sales from New Products
Percentage of New Parts Used in New Products
Percentage of Existing Parts Reused in New Products
Average Number of Distinct Products per Design Platform
Percentage of Products Reaching
Market before Competition
Ratio of Actual to Target Cost
Warranty Claims Percentage
Time from Design Inception to Production
Percentage of Floor Space Utilization

 

Here is the measurement formula list:

Engineering Dept Measurement Ratio Formula-1

Engineering Dept Measurement Ratio Formula-2

Engineering Dept Measurement Ratio Formula-3

More measurement ratio formula you may want to know as well:

Asset Utilization Measurements (Ratios)

Operating Performance Measurements (Ratios)

Cash Flow Measurements (Ratios)

Liquidity Measurements (Ratio)

Capital Structure and Solvency Measurements (Ratios)

Return on Investment Measurements (Ratios)

Market Performance Measurements (Ratios)

Measurements and Ratios For Financial and Accounting Department

Measurements and Ratios For Logistics Department

Measurements and Ratios For Production Department

Measurements and Ratios For Sales Departments